Yep, everybody loves gold. Except, that is, your friendly neighborhood MarketBeat scribe.
We know. We know. We’ve been skeptical during the entire run-up. But we remain convinced that this gold bubble is going to end badly. Though we don’t know when.
Yesterday, we pointed out one Reuters story that seemed to us a clear cut sign that gold mania is clearly crossing that ever important divide between clever and stupid: “A German firm that installs and manages gold vending machines aims to introduce them into the United States this year.”
A couple comments on our post seemed genuinely confused as to why we would see this as a giant neon sell signal on the yellow mental. “I do not know why this would be a reason to sell. I think it sounds like the beginning of gold becoming ‘mainstream,’” wrote one commenter.
That’s exactly the issue, some argue it’s a good sign of a top when assets go “mainstream” or attract a lot of attention from those that aren’t professional investors as a contrarian sell signal. That is, something akin to the ridiculous surge in interest in real estate among Americans ahead of the housing bust earlier this decade. Or the mass rush for tech and internet stocks that climaxed ahead of the tech bust in the late 1990s. At the peak of that flurry, stupid ideas such as Pets.com might have seemed at least somewhat plausible. And let’s be honest here, a gold bar vending machine is a dumb idea. (Though to be fair, Pets.com actually went public, where as the vending machines are apparently still in the works for the U.S.)
Originally posted by Pentothal
Originally posted by harrytuttle
4 years ago, gold was around $600 per oz. Now it's over twice that. That means that the dollar is worth less than half of what it was worth 4 years ago. That means I'm earning less than half of what I made 4 years ago.
Man this is depressing.
Originally posted by fakedirt
reply to post by havok
further bailouts simply mean government bonds become more toxic as they take on further bad debt. i think this is the reaction to that. if the rise continues and demand outstrips supply, it could mean certain currencies devalued and things could get nasty as those closer to the money making machines go on record to sell the bonds. if a certain country or corporation refuses to deal any further in bonds then the writing is on the wall.
Originally posted by FermiFlux
People are making sure their wealth is actually wealth. I don't know why anyone would have confidence in the dollar at the moment. Gold's going to the moon too, according to Jim Rogers and Peter Schiff;
www.cnbc.com...edit on 5-10-2010 by FermiFlux because: Video